Guys if you want to test the mod completely free of caps, you need to make sure the following ....

1. Your amp is able to handle the dc offset, regardless of how your amp is designed with or without dc blocking caps

2. No dc offset from amp's output to iem's or headphones.

By the way, I again measured the dc offsets from apple's lod and the numbers were like 1.5 volts. My measured dc offset from the amp to my iem's is zero.To produce the cleanest sound possible, I also disconnected the headphone jack from the board (wrap the cable end with some electrical tape). If connected, the board would be still feeding the audio to the headphone jack and it would still draw power from the battery. As much as I want to remove more unnecessary components from the board, unfortunately I have no idea about what/how to remove.

So this is the cleanest audio path we can get with this mod, also the most power efficient for the battery. Now I don't know if this is placebo or not, but I am now hearing the most neutral, transparent and cleanest sound ever, after I tested it with a few tracks (symphonies and orchestral work) which I consider the most muddy prone due to the nature of the music composed.

Looking into the matter further, my suspicions were confirmed. It is well-documented that the iPod 4G, as well as the 5G and mini, uses the PortalPlayer System on Chip (SoC) PP5020. Thanks to Generations - wikiPodLinux , the PP5020's datasheet confirms that SPDIF/I2S is being employed in these iPods. Check CommsDesign - Find out what's really inside the iPod also for some good information. At any rate, this confirms that digital out is possible for the iPod, you just need to get creative in figuring out how to get it.

Did anyone manage to impliment spdif in the end - sounds good solution to me ??

The plastic 'cap' (I have no idea how its called in english) that secures the LCD flex popped out. Both ends are fine but it seems so fragile that I don't know how to put it back... is there are know trick/way?